Reply to Overpriced house - lowball offer or wait?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I would make sure I had a decent second choice property lined up if I was going to offer low. We turned down an offer that was 10% under asking three years ago. But, supply was low and the buyer really didn't have other choices. They ended up with a higher-priced unit in a much worse location (like, gang central). As for us, the low offer was the only offer we got. Sucked, but rents were skyrocketing so we ended up renting the place out for a few years. Just talked to the realtor this week and she thinks market is now at the price we originally wanted. We'd be happy with 5% under that original price, but we don't regret for a minute that we refused a 10% punch in the face by a buyer who was clearly trying to take advantage of the panic in 2009.  [/quote]

Great that you are happy you chose to rent and wait for the market to turn around, but why do you think, even in hindsight, that the 2009 offer was a punch in the face? If it was so unreasonable, then you would have received higher, more reasonable offers.  If you had been willing to negotiate, maybe that buyer would have have met you in the middle. This kind of irrational response on the part of a seller is a perfect illustration of what OP could be up against.[/quote]

Wait, how am I irrational? We turned down a lowball offer. Sat on the property for three years, losing nothing. Now we are looking at selling for the amount we want. The family that made the lowball offer paid more than our list price for a tiny condo in gangland. We lost nothing. They lost a much better property. I just don't get how that makes us irrational.

Now, I know the general theory is that the sales price is the market and since we got one offer, that was the market price for our property. But in 2009, as now, it is tough for even well-qualified buyers to get loans and property values everywhere were affected by abnormally high foreclosure rates. Those aren't normal market conditions but they are factors that pushed prices down, some would say artificially. We simply chose to wait it out.

Oh and we did offer to meet in the middle but the lowball buyers refused to budge. They knew we needed to move and felt they had us over a barrel. We did not shut down negotiations, though, until they asked us what the racial make-up of the other owners was. At that point we decided they weren't serious and that they were looking for a steal, not a deal.  [/quote]

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